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The Trend Of Donating Cryptocurrency To Nonprofits – Forbes

Bitcoin symbol inside donation box isolated on orange background. 3d illustration
The Dorothy A. Johnson Center for Philanthropy just published its report 11 Trends in Philanthropy in 2022.    The number one trend is  the donation of Cryptocurrency to nonprofits by Julie Couturier. This is a well written report, and I recommend reading it.  Below is a brief  summary of the topics discussed relative to cryptocurrency and nonprofits.
Donations of Cryptocurrency to nonprofits began in 2017 when Pineapple Fund began gifting what ended up being 5,104 Bitcoins worth over $55 million to 60 charities. Expect that as a new segment of donors grows wealthy by owning these volatile, confusing and difficult to grasp digital assets, more and more cryptocurrency will be given to Donor Advised Funds and directly to nonprofits. 
This emergence of  gifting cryptocurrency is an opportunity for nonprofits. For U.S. Donors, gifting of cryptocurrency is a non-taxable event, and as such no capital gains tax is due. Another advantage of using  cryptocurrency is for international transactions that are done in a few moments and for nominal costs, rather than traditional transactions which takes days to complete as well as incurring  significant fees. The advent of cryptocurrency has created a  new group of Donors, those of the younger generations, Millennials and Gen Z. 
Cryptocurrency does have risks. Some argue that cryptocurrency should be sold immediately on receipt,  and others argue for it to be held by the non-profit. Blockchain transactions are secure, but anonymous, opening up the nonprofit, if the donor later turns out to be problematic, to reputational damage at least and possibly money laundering charges at worst.
Despite this, with 300 million individuals holding cryptocurrency world-wide, nonprofits cannot ignore donations of cryptocurrency. These donations will require considerable planning for both the nonprofit and the donors.


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